Tenure security and soil conservation in an overlapping generation rural economy
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Tenure security and subsistence needs influence the choice between unexploited topsoil and unspent money (i.e., savings) as the mode of transfer. Using a unique household-level dataset from Bangladesh, which contains data on cropping-intensity and savings spent on education, we detect that rural agricultural households with secured tenure have lower cropping-intensity and higher educational expenditure. Furthermore, tenure security and poverty have opposite, but not offsetting, effects. Households prefer higher educational expenditure to lower cropping-intensity as the mode of transfer. Thus, increased public expenditure may lower the pressure on land and soil resources, by lowering private educational expenditure.